health apparently she's pretty serious about this >> good for her for taking a stand. she's not hooked into the whole thing on the i.g >> but should she delete the account? or what would be the point in that >> she can do it on her pc >> she has people for that >> thank you for watching "power lunch. "closing bell" starts right now. good afternoon welcome to "the closing bell." i'm wilfred frost at post 8. coming up a rare and exclusive interview with the two decade long ceo of the disney company michael eisner >> i'm sara eisen. welcome, everyone. we're going to tell you everything you need to know as an investor before the market close. let's start here with what is driving the action higher. the dow is up a little more than 60 points. oil prices are spiking after a tanker attack in the middle east this morning consumer stocks are rallying and bond yields are sliding. joining us for the entire hour

until the close, cnbc contributor stephanie link from tiaa a nuveen company. welcome, stephanie >> thanks. >> energy doesn't usually lead this market but is today on the oil bounce and questions about whether that's sustainable and given sort of the scale and increase in tensions whether the move is big enough to bring back the sector and commodity trade >> i don't know. i really don't because it's been a tough industry for the whole year. for a whul of years now. so this is really more a supply issue concern. i think the biggest issue for oil are demand and the demand environment has been slowing and the revisions have been lower. so with that as a backdrop this might be just temporary. you would have thought oil would have been rallying much more than it did. >> i spoke as well about 20 minutes ago to one of the senior traders at one of the major investment banks and said was pleased to see the algos didn't disrupt the market when pompeo came out and clearly blamed iran on that. that could have been a trigger aside from the oil moves today on the broader market the path

of least resistance seems to be higher not huge volumes but till we get to those events -- >> which is different than may >> oh, yes. may was all about being defensive, owning growth, owning staples and utilities. and june actually has been a little bit different june has been a little bit of both having that barbell approach -- >> big change. >> absolutely. and we are getting closer to trade one way or the other so i think that it's been a quality rally this last couple of weeks and a barbell so we'll see what happens. >> lots to discuss in the hour ahead. we've got 58 minutes left of trade. let's get straight to the big stories we're watching dom chu's trarking the move in oil. aditdi roy has details on new competition for beyond meat. seema mody has the tariff impact on furniture retail. and sara has the latest on fiverr's ipo dom, let's start with you. >> the oil prices as you just mentioned moving lower here overall in a near to medium term as you can see for brent crude futures up on the day but well

off the highs. we are still off about 18% from the highs we saw in april. and we are still down about 29% since the highs that we saw back in october so brent certainly on a down trend right now despite today's action if you look at where within the industry we are seeing the most moves it is with oil exploration and production because you can see here oil services etf is up about 3 3/4% month to date down here a little bit more for the oil and gas exploration and production company but remember, demand as stephanie mention the a key. earlier today opec reduced its full-year 2019 demand forecast tomorrow, guys, we get the international energy agency's demand forecast numbers. so we'll pay attention to those. back over to you guys. >> thank you, dom. turning now to a new potential competitor for beyond meat aditi roy has those details for us aditi. >> reporter: hi, sara. that competitor is tyson foods and news from that company sent shares of beyond down about 4% in the premarket after tyson foods announced it will be launching plant-based

nuggets and blended burgers later this year. tyson foods was an investor in beyond meat, you may remember, but pulled out of the company right before it went public. just yesterday perdue also announced nuggets made with both chicken and plant-based ingredients. and nestle is planning to launch its own plant-based burger this fall this week beyond meat saw downgraded from jpmorgan and bernstein. but some investors still are loyal to the brand one told me millennials don't want the same legacy brands as the ones their parents grew up on back to you guys >> adiaditi, thank you very much shares of rh surging today on earnings but it was comments about the tariff impact that caught investor attention most of all seema mody has more for us back at hk. hey, seema >> restoration hardware laying out its tariff strategy which includes moving some production out of china, building manufacturing facilities in the u.s., and raising prices on select goods analysts say higher-priced furniture is less of a concern

for restoration hardware given that it's selling to higher-end consumers who typically are less price sensitive. but wedbush securities says their risks of shifting production, especially to developing countries in asia where you may not get the same level of quality there's also the possibility of tariffs being removed altogether and then you've wasted the time and money investing in other countries where success is not certain. despite those risks shares of rh enjoying a noice day, up about 18%. >> thank you so much tomorrow on "mad money" jim cramer will speak exclusively to the ceo of rh. he'll be on 6:00 p.m. eastern time you don't want to miss that. meanwhile, sara, you're watching shares of fiverr soaring earlier today. >> this is the ipo of the day and it's another strong signal for the market fiverr seeing a big pop at the open it opened up about 30% it's now up 84%. company priced shares at just $21. and that was above its original target range of $18 to $20 per share. strong what is it

it's an online marketplace that connects freelancers to customers for digital services everything from logo design to voice-over work, translation, illustration early on "squawk on the street" we talked to ceo micah kaufman about the growth prospects and how he sees the total addressable market for this company. >> there's over 162 million freelancers between the eu and the u.s. so the opportunity's massive and it's just starting to come online this is like 1995 for e-commerce it's so exciting >> he's really betting there on the growth of the freelance economy. kaufman did acknowledge the choppy start for other gig chi names like uber and lyft he says there's always some risk but today's strong showing comes one day after crowdstrike soared 70% in its own market debut. you can add it, wilfred, to beyond meat, zoom, and a few of

these other ipos said say take out the ride sharing companies of ones that were successful, unprofitable and very strong revenue growth and what investors look to see which is a very lafrnrge addressable market >> bottom line in the red but halved roughly in the last two years the amount of its losses nofg in the right direction. at the moment people happy to pay up for that. >> i am really glad bankers know how to price these things pin think they learned from uber and lyft quite frankly if there is demand there price it accordingly so the investors actually make money as well. it's very important to have the support and have a successful ipo. it's much easier than not. >> let's talk more about the broader markets today. joining us, john cadunis ceo of calamos investments. thanks so much for joining us. >> thank you for having me >> you've just launched a small cap fund >> yes >> as well as all your other products i thought i'd start there in terms of what your take is on why now is the right time to go

into small caps. >> sure. well, we're active managers. we have been for 41 years. and small cap is very, very much active manager and we have a fantastic portfolio manager, brendan, who's from timpani, upper milwaukee. and we thought it was a great opportunity to add this to the line-up. i think the markets going forward in the last year or two have been extremely volatile and i think it's going to be active managers who can pick the right stocks, a stock picker's market, and that's very, very apparent in small and mid-cap funds. >> so it's not necessarily a loud call on domestic u.s. economy. >> well, it's not a call on that it's more on our strategy. but if i had to say anything, we are having a very strong economy. it's slowing down a bit but it's still pretty strong. >> yeah. you don't see the inversion of the yield curve or some of the new confidence surveys pointing to increasing risks of recession as a threat to the market or the

economy? >> i don't see recession in the foreseeable future i think the inverted yield curve, there's other reasons why it's inverted, not because of recession. people are grasping globally for yield. and when you see other bond markets around the planet, we have negative yields and returns. they're going to come to the united states for safety and quality and attack the 10-year zmaz you why see it trading at these low levels i think you're going to continue to see that. it's not necessarily anything to do with the recession that's coming numbers are slowing. unemployment's slowing but we're getting to a point where we're pretty close to full employment you have to take these numbers for what they're worth >> stephanie, a couple of data points in the last couple of days pointed to a strong u.s. economy. you think we didn't focus enough on those data points and i just think they're very good data points the mortgage application numbers up 27% the best in 2 1/2 years.

and basically it's telling us that low interest rates are finally going to have an impact for the consumer the 30-year fixed got to 4.12. and all of a sudden you see this surge. so they got a bargain and they went in and were actually interested at that level i think that's very important for the consumer i really feel like the nfib, small business optimism index was also very telling and opposite of what some of the larger companies are telling us. it actually was up for the fourth consecutive month at 105. the average for this nfib index is 98. so it's headed also in a different direction from what we're hearing. and not only that but they talked very confidently about hiring intentions, spending, capex, sales growth, earnings growth so you're going to ask me what's the difference the difference is because they benefited much more from tax and also deregulation. but i'm very encouraged by it because i really do think it's a very telling situation about confidence >> finally, john, how are you playing the healthy consumer

trend? what sort of opportunities are there out there? >> i think the opportunity, people need to understand, they have to be invested in the market whether they're scared or not, i know one of the biggest banks back in december when things weren't going that well said go to cash. i think that's absolutely the wrong call i think you have to be invested. you could be defensive there are different strategies to take care of your down side to promote one of our funds that just got upgraded to five stars, hedged equity. eli par's a great manager. you have long equities but you protect yourself with an options overlay on the down side you have to be invested in the market and play this equity. i think we have room to run. >> john, thanks for joining us john koudounis, ceo of calamos investments. after the bell citi's he oad f

commodities research will join us to drill down on today's oil move and where he thinks crude could be headed next >> later on the show, former disney ceo media titan michael eisner joins us here at post 9 for a rare and exclusive interview. we're going to talk to him about disney's big bet on direct to consumer streaming as well as many other topics in clinical trials, prevagen has been shown to improve short-term memory. prevagen. healthier brain. better life.

hello, wilf. we're going to start with energy going to call it energy deficient. taking a look at today's move in a broader context. then rollover risk looking at recession probabilities. implied recession probabilities. interplay with the stock market. that's mr. softy to you. might be about ice cream or a certain tech stock we will get to that. and fading the flux. by flux i mean policy uncertainty. looking at how that stands up against stock market volatility. so energy deficient. here's a one-year chart of a couple of key fast-moving sectors within energy. this is essentially expiration and production as well as oil services you've got these minor bounces of a couple percent of these stocks it really doesn't show up that much on these charts just because it has been such a tough road so clearly today it's just a

very modest bounce in the context of some trade here the energy sector as a weighting in the broader s&p 500 this is over a very, very long period of time this is from wolf research here. it's below 5% at last report a record low this goes back all the way to about 1980 essentially a 40-year look back here is 1988 or so. $10 crude oil. that's where we were in terms of the earnings obviously some mix of cyclical and secular trends either you say it's so washed out, still part of the world economy, it looks too cheap, or the market's telling us that in general crude oil and fossil fuels are somehow on the way, maybe telling you both those things, guys >> all right, mike, good one very topical see you in a bit crude oil did rise today on news of a suspected oil tanker attack in the gulf of oman. just one month ago four tankers were also attacked before entering the persian gulf, which

sent creude up more than 1%. rallying before pulling back again. how long will today's pop in oil actually last? let's bring in ed morris global heaved commodities research at citi ed, this appears to be escalation in tensions in what is already a very tense region of the world are you surprised to see especially after the u.s. points a finger at iran oil prices only rising 2%? >> no, i'm not surprised the market is being pulled and pushed by opposing forces. sentiment at the moment is overwhelming what market signals are. market signals are showing an incredibly tight physical market but there's concern about whether o'pac will bring production back. there are concerns about where demand is going. and i think the market is still awaiting other empirical data to have a big shift up. i think the likelihood of a shift up is much greater than one down by the time we get to july but it's wait and see for a while when we get more data

points >> with today's news, though, what level of escalated tension will we need to see between the u.s. and iran or between iran and other players in the region for it to just overwhelm the supply and demand dynamics you said are dominating at the moment would it need to be boots on the ground, that sort of thing, or what >> i'm not sure we're going to see a major conflict i think what the market really needs is evidence that inventories are growing. i think there will be by the time we get to this point in july very clear evidence that inventories in the world x the u.s. are coming down at a very rapid right. probably between a 1 and 2 million barrel a day rate. that's what the market needs it needs very clear evidence that the market is as tight as the forward conserve of brent or dubai. proof showing that the market is tight. >> it's stephanie link i have a question for you about inventories. in april and may we saw 33 million barrels of inventory build versus a five-year average of 5 to 6 million. were you surprised by the inventory build and what do you think it's going to take to see

that wear down and get to your conclusion by july to see a tighter market >> well, one of the contradictions in the market is we have very high frequency data from the u.s. and much lower frequency data from the world. the u.s. has a market that's in contan contango wti's prices are lower than deferred prices. that's a sign the inventory can't get out of cushing, can't get to the gulf coast. so we have crossed signals between the u.s. with high frequency data and the rest of the world where the data are lagging but the physical data on the structure of brent are quite strong so i think what we will see eventually is a market where demand for crude between the end of last month two weeks ago and the end of august at the peak of summer demand is going to see crude oil demand, crude oil refinery through putt growing by at least 3 to 3 1/2 million barrels a today to where it was

two weeks ago. that's a physical market that cannot be supplied the u.s. can supply it a bit when pipelines come into play to remove oil from cushing and get it to the gulf coast we don't expect that to happen until the middle of the summer when demand is quite high. it should then turn wti structure into strength into backwardation and reduce the spread between brent and wti, which is currently close to $10 today. and probably will collapse to closer to 5 once those pipelines are put in place >> ed, just quickly, is the data you're seeing that relates to the oil price on the global demand side suggesting that the global economy's perhaps a bit weaker than having the s&p 500 less than 2% from all-time highs would suggest? >> well, if you look at where the weakness in demand is on the oil side, that weakness in demand is partly seen in individual economies including the u.s. where it's still positive but not massively positive also in china. but the real hit is on the trade

side so we had trade that was growing in the winter of 2017 to the winter of 2018 at a remarkably rapid rate that had an extra pull on demand, 300,000 barrels a day depending how you look at weather. now we're seeing trade as a result of these trade frictions being reduced on a month on month, year on year basis. and that means demand for the middle distillate pool is really down that's the one big impact on the trade side and it's the one area where a breakthrough on the trade discussions between china and the u.s. could real have a rally on the trading side and a pull on demand countered to this pessimism about where demand might be going next winter >> ed morris, thank you. >> thanks for having me. >> crude oil now down less -- or up less than 2%. though every energy stock within the s&p energy group is higher under 40 minutes to go before the close. dow gains are slipping here into the close.

still higher by about 28 points. the biggest winner today on the dow is disney. disney and home depot contributing the most to the rally. j&j and visa at the bottom of the pack >> looking forward to the big interview with former disney ceo. but also still to come, exclusive interview with the ceo of toy giant mga entertainment we'll hear the inside story of why his rg ppol thmeerrosawi mattel fell apart. my degree from snhu has helped me tremendously. the flexible class schedules allowed me to go to work full time,

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welcome back to "closing bell." dow's up about 34 points time to get word on the street wedbush upgrading lennar to outperform from neutral. the firm also raising its price target to $62 a share from 50, citing lower mortgage rates and continuing demand for affordable housing. evercore isi initiating both uber and lyft as outperform. the firm is bullish on the ride sharing industry, sees positive near-term catalysts for both stocks >> and moffett nathanson cutting its price target on twitter to $25 from 28. the firm reiterated its sell rating saying it anticipates slowing revenue growth in the back half of the year. stephanie, want to come back to this evercore note on lyft and uber it's saying reflexivity of the two is high, saying one stock's success or failure lin herniately drive the other, as opposed to it being a zero sum game between the two and also thinks the correlation of the two stocks is over 70 serious since they've listed. >> these are two behemoths for sure you either believe in this story

and the total addressable market and the growth they both offer, and they both can offer, it or you don't. they're not going to make money for quite some time. sow pick one or the other. i think lyft is the cleaner of the two if you're going to i have a really hard time valuing these things that's just not my style but i do think they are going to continue to move together. >> they also say they think they'll be profitable sooner than other people on the street as opposed to a super long term. they say we would rethink our thesis and put sell ratings if top line growth fell below 20% that's the key cutoff they still need to keep saying. >> they're going to keep spending they're going to keep spending so i wouldn't -- >> joining the chorus of bullish analysts especially on uber >> decent price targets as well with -- i've lost the place. 40% upside, for example. rather than just small ones. >> up next, trouble in toy land. we will speak exclusively with the ceo of mga entertainment they make the bratz doll about his failed bid to merge with mattel and replace its entire board s ever faced.

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welcome back just over 30 minutes left of trade. we're higher but off the highs for the session. up 0.2% on the s&p three things driving the action. oil prices spiking after a tanker attack in the middle east

consumer stocks are rallying and bond yields are slide. >> time to get a cnbc news update are sue rea hi, sue. >> hello, sara hello, everyone. here's what's happening at this hour secretary of state mike pompeo making comments from the state department last hour the secretary blaming iran directly for the attacks on those two oil vessels in the gulf of oman and con demg iran for its actions. >> no economic sanctions entitle the islamic republic to attack innocent civilians, instrument global oil markets, and engage in nuclear blackmail the international community condemns iran's assault on the freedom of navigation and the targeting of innocent civilians. the michigan attorney general's office has dismissed all pending criminal charges arising from the flint drinking water crisis including the charge of involuntary manslaughter against one official the a.g. has decided to start over with an expanded investigation. and finally, kfc is launching its first ever vegan fried chicken burger in the uk

it's called the impostor burger. it's made from the meat substitute qorn and colted in the colonel's original spices. he it's launching in three cities in the uk london is one of them. i don't know >> i remember that a decade or so ago >> it's new to me that kfc would get into it. >> vegan nuggets >> it's a trend. >> sue, thank you. >> you got it. >> we have mike's second dashboard. mike, over to you. >> thank you, wilf we're taking a look at maybe risk of the economy rolling over this has been the story in the markets for quite a long time right now. this chart is from bca research and it shows the fed's implied probability of recession indicator in orange here and this is an inverted scale. so when this is going down the rix of recession implied here in the bond market is going up. by the way, it's just the yield

curve. essentially if you believe the yield curve is not a good signal of the economy going ahead you don't believe in the odds of rising but i do think it's interesting because it's up against the s&p 500's annual change, how much it's up or down over the past 12 months so what's interesting about this is it's very common to say the stock market is still holding near its highs and yet the yield curve is down and bond yields are down that's some kind of huge disconnect. but if you look at it on a one-year chart in terms of performance what you see is that stocks are basically flat on a year over year basis look at it this way. stocks are also kind of in a suppressed condition and maybe are bracing for the possibility that the outlook weakens from here so obviously we're on alert here again, if you want to dismiss the yield curve you can dismiss this orange line right here. but this i think is the perceived disconnect that we're all fixated on right here ahead of the fed, guys >> absolutely. mike, thanks see you in a bit toymaker mattel rejecting a renewed merger bid from mga entertainment ceo isaac larian the new plan called for larian

to become amattel's ceo and for all mattel board members to immediately resign without further compensation joining us now in an exclusive interview is mga entertainment ceo isaac larian welcome, isaac nice to see you. >> hi, sara. good morning good to see you. thank you. >> a lot of people are trying to figure out, analysts, investors, i did a lot of reporting on this one, what exactly you were getting at you and mattel have a sort of dysfunctional even for competitors kind of long-standing ugly relationship. with legal battles and the like. what exactly were you trying to do here? >> well, i love toy business, sara i've been in toy business for 40 years. and mattel at one time was iconic foundation of the toy business and i hate to see it go the way toys "r" us did. i think the way they are functioning right now they are going to go into bankruptcy shortly, within a year or so,

because this board, whether they call them family and friend board, they have no idea one of the board members is ex-teacher they have nobody from toy business on that board except one guy who ran a company called top toys in denmark and top toys went into complete liquidation. they didn't even make it to chapter 11 so they have no idea about the toy business and i think if we combine the two companies the value of the stock and the shareholders value will go up tremendously. but they rejected my very fair offer. >> what's the main thing you do on day one if you were able to take them over that would confidently turn them around in your view? >> the first thing i will do is fire the whole board and the management board which is there. they are frankly useless none of them -- and they get

paid huge, huge, huge salaries and if i was on the other side i would not hire any of these people so i would do that they have great designers. and i would focus on new product, new designs to get product out in the market. because they have a great infrastructure worldwide and what they look right now is toys, real toys. they want to be in the movie business i think in business you've got to pick a lane either you are in movie business or toy business. >> well, i think that in the company's defense they have this new ceo and he just came in last april and we have seen three consecutive quarters of better numbers. improving profitability metrics, operating income, ebidta yes, they're in the middle of a multiyear turnaround and it hasn't been great but there has been improvement and analysts are picking up on that point there's also some appreciation on wall street for the asset

light model of taking these very strong franchises like a barbie and a hot wheels and turning them into movies >> well, sara, a couple of things yunan, i've never met him. he never took my call. which is crazy i won't bite but i have known of him. and his biggest claim to fame was when he sold the maker studio to disney which disney wrote off in about nine-month ride after that. when you look at the numbers, they're relevant they lost $500 million in sales. their operation expense is 42% a staggering 42% a year. and i think when you look at the numbers that you just mentioned there's a lot of fuzzy accounting going on. channel staffing, et cetera. and when you look at barbie, according to mpd barbie is

now -- which was up for so many years they were down over 6% >> isaac, if -- finish your answer go for it. >> so then you look at the brands that they have, look at american girl, which they paid $730 million or more for it, and it was rising and where is american girl now? this management destroyed that brand. that brand, american girl, if they offered it to me i will not offer $10 million to buy it. they absolutely destroyed that brand. >> isaac, if there is so much upside if this was managed directly in your eyes, why not just make them an offer they can't refuse why don't you up your bid? what would be the price you're willing to go to >> well, i think mattel stock frankly and i'm being generous is not worth more than $6 a share right now. because that's a value of barbie and hot wheels and fisher-price

frankly. and i don't think they will accept that. this management and board is hostile to me and mga. so i don't think they will accept any reasonable offer. i've got to look at other ways if i want to do this >> i mean, on the barbie point, this was a brand that a few years ago was really -- people were calling the death of bar ! barbie and it has turned around and in fact mattel has launched new shapes and new colors and new careers for barbie to make her more relevant. and the numbers have looked a lot better than, say, ten years ago >> right because there is no fashion doll in the market right now. but i'm going to show you this product lol omg doll, which is a fashion doll coming out from mga on july 7th. that is going -- i promise you, that is going to take a lot of market share from barbie they really -- when you have a

monopoly and you do not reinvent and innovate your product, you're not going to get anywhere it's not long-term >> well, we invite ynon on to counter the argument i asked them for comment they did not provide us anything on the record. isaac, thank you for joining us, though, to state your case >> thank you thank you, sara. i appreciate it. >> isaac larian. >> thank you >> it's actually lit a fire under mattel's stock ever since this report came out in the "l.a. times. >> certainly has but this company has so much work to do >> mattel. >> mattel does i think $6 is a pretty lowball number, especially for the brands >> the b word for bankrupt >> that's very true. this company was so mismanaged for so many years. they've hired a couple of ceos in the last couple of years. they have to get stability they've got to get the cost structure right. they do have good brands, though, and they have distribution >> and they have shown some improvement under the new ceo. >> yes >> we have just under 20 minutes

left of trade. and here's where we stand right now in the markets we are higher by 67 points on the dow. or a quarter of 1% nasdaq's up half a percent the small cap russell index leads the charge up 0.9% bbnt and suntrust unveiled their post-merger plans. and its name is taking some heat on social media. we'll discuss that next. >> later, our rare and exclusive interview with former disney ceo michael eisner his take on the rise of streaming and which service he likes to partner with. that's coming up on "closing bell." dow's up 62. we'll be right back.

welcome back to "closing bell." under 20 minutes to go before the close. a major medical conference kicking off today in amsterdam where we could see some big biotech stock moves. meg tirrell has that story in today's stock therapy. meg. >> two stocks to watch there are global blood therapeutics and bluebird bio this conference focuses on hematology diseases of the mood. and both biotech companies are expected to have important updates. for global blood therapeutics it will be more data on its experimental drug for sickle cell disease william blair says the stock could move 10% to 15% on the up side for positive news or 20% to 40% to the down side on any disappointment analysts are optimistic because global blood's presentation is a featured one at the conference

so expectations are high going into it. now, bluebird bio will also be in focus but potentially for an update on drug pricing the company's gene therapy for a rare blood disease called beta falicemia was just approved in europe and analysts expect we could get the price tag tomorrow, guys that will be a big one to watch. sara, back over to you >> meg tirrell, thank you. worst performing sector in the s&p right now. banking news, suntrust and bbnt take something heat on social media for the company's post-merger name, which is truest financial you've been digging into this story. truest >> truest. it's take everyone -- >> like true and trust >> i don't really know but that's the true. truist financial it's getting a lot of attention. it's got me thinking about in fact why we haven't seen more bank deals since this one was announced back in february zmv and in fact the name is a small part of the explanation. bbnt and suntrust deal a merger of equals by the way as opposed to a takeover. it has been well received. the value creation, the cost savings all significant.

so why haven't there been more -- well, down to one conversation -- the conversation with a senior investment banker. and he described, that the reason is the lack of social compromise so laying off workers, moving headquarters, who's going to get the management position and what is the new name going to be. those social compromise issues have stopped a few other deals getting over the line in the recent months, even when you've got potential merger of equals and investors tend to prefer anyway than an outright -- >> is anyone not going to see more bank mergers? >> i think if they were they would be merger of equals rather than takeovers probably not going to see one of the size of bbnt and suntrust. but the rationale for these deals, cost savings, investing in tech still exists perhaps more likely on the small end of the spectrum. like the tcf chemical deal that we saw in january, that created a bank of about a 6 billion market cap of assets under 50 billion. that's possible. but there are still those social compromise issues there. but they're just a little bit smaller still. but the name in that is part of

the issue that people can't quite decide >> it's really amazing because something about the cost cutting you talk about, because suntrust actually was so well run and as was bbnt. but suntrust overt last five years has really gotten their acting to. so to see that much kind of overhead that they're expecting and maybe even up side to that was a surprise to me >> in terms of the positives of the deal >> yes absolutely >> we'll have to see if there are any more but that one as bank mergers go has gone down well so far. typically bank mergers don't usually get bid up by investors. coming up we've got your last chance trade 40 minutes left of trade. >> as we go to break take a look at mattel. the stock dropped after mga ceo told us moments ago that the stock is not worth more than $6 a share. had been pretty much on the rise since word of that mga entertainment proposed merger. very bearish comments on the company from the ceo just now. we'll be right back. [leaf blower]

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introducing an easier way to move with xfinity. it's just another way we're working to make your life simple, easy, awesome. go to xfinity.com/moving to get started. we've got ten minutes left of trade stephanie, what have you gone for for your last chance trade today? >> blackstone. i have a fundamental reason and a technical reason and a catalyst kind of thing we know asset gathering is obviously very strong. all the flows are going into alts unfortunately for an asset manager like myself. 30% discount to the s&p. trading at a discount to the group. 5% dividend yield. margin upside and earnings upside and the catalyst is on july 1st they go into a c corp. structure and i think you're going to get many more investors as a result. >> typical pushback would be the private equity investment are at record valuation highs and

that's why it -- is it a concern? >> these guys are the behemoth, they're an industry leader they're extremely diversified. they're not just in one piece within private equity. they believe there's a lot of up side for them particularly on the real estate side globally. i think they have much more wherewithal and they have way better execution and i have a catalyst july 1st -- >> up 30% in three months. >> absolutely. >> after the bell we are going to get earnings from broadcom. josh lipton with a preview of the numbers to watch we're also going to get ipo pricing for chewy with leslie picker josh, first to you on broadcom >> sara, here is what we expect from broadcom's q2 report. eps of 5.16 on revenue $5.86 billion. that would imply growth of 13% on the top line. more broadly bernstein's stacy razgon wants to know what's the impact of continued trade tensions with china here specifically the recent sanctions placed on

huawei, what does that mean for the company? rozgan estimates huawei represents mid single digits of broadcom's business. >> let's send it to leslie for a preview of what we can expect from chewy's ipo pricing >> the pricing call expected to begin in about 40 minutes from now. that's when chewy's executives and advisers will debate and set an ipo price to sell stock to investors. chewy hiked its range yesterday on greater than expected demand at the high end of its new range chewy would raise $117 million and petsmart would raise another $756 million now, petsmart bought chewy would years ago for $3.5 billion it's now turning around and ipoing it for more than twice that valuation petsmart will maintain control of chewy following the debut guys >> leslie, thank you very much for that up next here on "the closing bell" we'll be covering all of the angles of the close of the market, which is 7 1/2 minutes away don't go anywhere.

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>> right you know, sara, i think that we got a look at cpi and inflation on wednesday now retail sales, the consensus is for up .7 why is that so high? because a week ago motor vehicle sales had a nice beat at 17.3 million. that's going to give a boost to that headline number tomorrow. >> kevin, do you think the small cap outperformance that we've seen today, can that continue? what's driving it? >> the russell index is a huge index of small caps. we always like to look there for several reasons, right a lot of regional banks are in there and a lot of small companies that don't really get affected by the dollar trade or trade wars so we really like to look at that big sample size on the russell as an indicator of how healthy this market really is. >> and quickly, broadcom reports after the close. what are you expecting how's that likely to trade >> well, our expertise is options, wilfred, and we're

looking at higher than a $15 expected move. so we're looking at a big move in either direction, frankly >> okay. well, we will keep an eye on that at the moment the stock is pretty much flat as it approaches the close. kevin hincks thanks for joining us let's send it over to mike santoli, the third market dashboard. mike >> calling this one that's mr. softee to you. mr. softee of course trading, that's slang for microsoft quiet day for the broad indexes. i thought i'd like at the largest stock in the u.s. stock market, holding a trillion-dollar valuation. if anything perhaps underappreciated how well it's done up 30% this year within 2% of its all-time high at a time when fang and apple are 9% to 20% below their highs. very long history. 25 years of microsoft relative to the s&p 500 this is a ratio. what you see is this massive blastoff in the late '90s. that was a tremendous 600% outperformance from the mid '90s to the end of 1999

and then 15 years kind of in the wilderness, no outperformance. gave back half the outperformance now here you go. another vertical move. how much can it last we have a trillion-dollar -- amazon and apple could not hold that level it's been kind of a remarkable run. the only question is does it get too overloved in the short term? going to go up to the nasdaq where frank holland has a rundown of that activity >> game on at the nasdaq with amazon leading the nasdaq 100 just on the speculation that it's entering the cloud computing gaming space microsoft expected to be a leader in that space, especially now with its sometime rival sony agreeing to use its azure platform google also launching a gaming platform in november chips continuing their recovery. intel up over half a percent on the down side monster beverage the biggest impact, after it announced it will release drinks with alcohol and cannabis and netflix also seeing a dip despite all the excitement over a mobile game for its "stranger

things" series gaming full circle here. now over to bob pisani at the new york stock exchange. >> thanks very much, frank up about 50 points on the dow jones industrial average gains today largely limited to individual stocks that are associated with tariffs. so for example, retail stocks move up. semi-kushlth stocks move up. metal stocks transports also had a good day these are all associated typically with tariffs and trade. underperforming defensive names. we saw for example some of the health care stocks, utility stocks, consumer staples on the down side, reits basically on the flat side. this has been a reversal of the trend recently last six weeks with all the volatility on tariffs and trade these sectors had tended to outperform, particularly utilities, for example, and consumer staples the overall market if we get? resolution on trade that certainly is going to reverse. energy a rare positive day but don't kid yourself if this would have been ten years ago and you would have had this chaos in the gulf of oman oil would not be up 2%

it would be up 10% these stocks would be up 5%, 6%, 7%, 8% it's a sign the united states has become a major producer of world oil, competing with saudi arabia there's the "closing bell. the dow jones industrial average closing right about in the middle of the range right now, up 107 points to close at 26,116 if you are just joining us, good afternoon to you. welcome to "the closing bell." i'm wilfred frost. >> i'm sara eisen along with mike santoli, cnbc senior markets commentator. got a nice little pop there for the market into the close. dow jumped to up 100 points, which is where we settled today, up .4 of 1%. a lot of the groups turned green on the s&p as well just in the final seconds of trading or so and we ended up with 10 of the 11 sectors actually closings to. energy led the way but communication services did well with the internet names today.

consumer discretionaries, materials and industrials. very cyclical kind of feel as bob said. the russell 2000, it's been a big underperformer lately. it was the opposite today, up 1% >> energy of course the best performing sector. oil by the end only up 2% with those geopolitical concerns. had been as much as 4% higher earlier. dollar basically flat. we did see yields a little bit up and sort of plateaued by the end of the session >> the consumer stocks did really well, which sort of turns the tide of negativity around this group on tariffs. and if you think about the individual movers that led the charge, it was lululemon, fantastic quarter, in a league of its own restoration hardware also had a surprise guidance raise. lennar got an upgrade. the home builders did well off some better news put all of it together and yes, it's individual names but they're strong economy, strong consumer kind of names and that's whatworked in the markets today. >> as you said, a nice little run into the close up 0.4% on the s&p today investors awaiting earnings from

broadcom and the pricing of chewy's ipo. we'll pring you both as soon as they happen. >> and do not miss our exclusive interview with former disney ceo michael eisner on the increasingly competitive re streaming industry and ongoing calls to regulate the tech industry the dow today the biggest performer. charlie bobrinskoy is back, vice chairman and heaved ariel investments. stennie link, equities portfolio manager at nuveen, a tiaa company. and mike santoli, strength continues in the absence of any big catalyst >> i would say steady. market's not really showing its hand very clearly. you've been churning very gently in this range. s&p opened at 26 and change. we closed a little above that. holding the gains of this june pop. and i think below the surface it

looked fine. twice as many stocks up than down i still think it's a little bit of idling and waiting for the next little push because you know, it's not necessarily showing that the market has a sense of what it's going to get out of the fed, out of the retail sales tomorrow or anything >> mike, sara mentioned under armour that was one of the stocks that hit all-time highs a few of the other consumer names did too. what are the other names -- >> they're consumer like a starbucks, like visa, like chipotle so these kind of global brands that are kind of singular in their way i think is what's working right now. when it's visa, this is a platform that won't quit it's categorized as software in the s&p. it's defensive but it's quality and you know, reliable -- i think the market's willing to overpay for predictability right now and not look necessarily in a really aggressive way at cheap stuff that depends on good things happening --

>> also a lot of those have exposure to china. the market doesn't mind about that at the moment >> starbucks for sure. absolutely >> look, if you're keeping score, the s&p's 2.1% off of record highs charlie, is now an opportunity to make moves or do you have to wait to see what happens with the fed next week and whether xi and trump actually meet at g20 at the end of the month? >> unfortunately, you know what i'm going to say, and that is it's always a bad idea to try to time the market. nobody can predict which way it's going to go in general you want to be an investor when other people are panicking and negative and i would continue to say that people are too negative about the possibility of a recession i seem to pick up the paper every day and more and more economists are calling for a recession, saying the reality has gone on too long in general we think higher quality companies are reasonably priced, particularly in this interest rate environment. >> like what

>> charlie, i was just going to say, last chance trade stephanie picked blackstone. you like the private equity names as well, do you not? >> yeah. >> is stephanie right to prioritize blackstone? which are the other ones you hold >> she's splult rigabsolutely rt i was going to yell at stephanie for stealing my pick that's a name you know kkr and blackstone had been our favorites for over a year. the theory is they're incredibly cheap stocks with great business models that nobody could own them because they were partnerships index funds couldn't own them. lots of mutual funds don't want to get a k-1 kkr did the right thing and converted and the stock popped 30%. now blackstone's doing the right thing and the stock's up almost 50%. absolutely great names. still reasonably priced. blackstone trading at 14 times forward earnings could easily trade at a market multiple >> stephanie, on energy which was the biggest story today and the bounce we saw earlier it faded. but energy stocks did really well you're an owner of some of these

names. what do you did with this group? it feels like there's still so much underperformance. the oil price is 30% off its recent highs >> and it's only 5% of the s&p 500 rating as mike's chart told us in the last segment, which is the last time it was below 5% was about 20 years ago when oil prices were up $12. $12. inflation adjusted $18 that's how cheap these things have gotten. and by the way, like journalists don't even look at this sector i don't know what you do i own quality. i own the companies like chevron that has a great balance sheet and they bought the permian assets so they have the better growth between chevron and ex n exxon. i like what hair doing in terms of streamlining efficiencies and operations i'm bar pelle belling it wi bar and -- on any given day they're up 5%, 6% or down.

i like to barbell it i'm not convinced we're off to the races in energy at this point. >> just want to ask you about some of the big tech names where do you stand on the political risk they're facing? >> thanks for bringing that up we have thought there's a lost political risk on this if you try to come one one topic the democrats and republicans agree on you have a hard time coming up with it. but elizabeth warren and donald trump both agree that the tech companies are exhibiting too much power i think we've absolutely got a risk here that the government goes after amazon in particular, google and facebook secondarily, for exercising monopoly power. and that may not be right economically but i think it is right politically and i don't think it is factored into these stocks >> what's factored into these stocks so far, mike? >> i think a little bit of anxiety about all of this. but it's really just i think taken some of the extra edge off the valuations

i don't think anybody thinks the -- i think it's made people gun-shy about paying up for facebook and alphabet in particular beyond that i don't think so i think it was more about them being a little crowded by the way, they bounced today you have a quiet day on this news front and they get a little bit of relief. >> they're not part of the june rally. so far month to date alphabet is still down, facebook is still down, netflix is still down. they are underperformers with this market -- >> they're giving back some of their outperformance >> remember that alphabet's quarter was not a good one and the lack of transparency was a big issue. so if you're a p.m. you're not happy already and now you have this other overhang. i think facebook is much more attractively vl yooud and priced i like their business model. i'm much more overweight fb fbs. >> i'm looking forward to talking to michael eisner about some of these big companies as well as of course the media space. stephanie we spoke earlier about how you thought the u.s. data had been overlooked this week. what about the fact that china's turning on its stimulus taps again? we got some news on that this morning. >> i think that's why this week some values, some cyclicals

have -- look at the metals and minings stocks this week alone i think people are starting to buy into that china has to do it is it going to lead to the growth that we are expecting probably not they really are getting impacted from the trade issues. but having stimulus is a good thing. you don't want to fight it and i think that's what's actually reflected in the stock. >> charlie, you also have these geopolitical risks just building and i know that's always a hard thing for the market and investors to figure out. if you look at the news fade, more aggressive attacks on two tankers. off the coast of iran. the u.s. pointing their finger you've got these protests in hong kong against president xi and the chinese government the trade conflict does all of this add up to a world that makes it riskier for investors? >> i'm trying to think back over the last five or six years has will ever been a time there weren't tensions we had north korea lobbing missiles over japan. we had significant worries about whether we were going to re-up nafta. so there are always tensions

frankly, it's a big deal now that the u.s. is producing as much oil as we are the kind of things that happened in the middle east just don't have the effect on our economy that they did when the arab oil embargo came in in '72 in general i don't think international tensions are the big risk that's not being factored in. i think they're being appropriately factored in. >> charlie and stephanie, thank you both for joining us. great to see you as always >> thanks for having me. >> up next former disney ceo michael eisner joins us for a rare and exclusive interview on the state of the streaming industry and increasing calls to regulate big tech. disney best rfmeinhepeorr t dow today. we'll be right back on "closing bell." we're the slowskys.

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or reschedule an appointment, even on nights and weekends. today's xfinity service. simple. easy. awesome. i'd rather not. welcome back stocks rebounding from a two-day pullback bob pisani has been in the middle of the action of course here on the floor of the stock exchange frank holland in the middle of it at the nasdaq bob, let's start with you. what took place today? >> we saw some of the trade-related names move up but it was a particularly good day for energy stocks with all the chaos in the gulf of hormuz. exxon and chevron moving up. goldman having a good day. but generally the defensive names, the pfizers out there on the down side, johnson & johnson also lagging but remember they'd been winners in the last six weeks.

the ipo--palooza continues today. another winner today, fiber international which does the online freelance platform. up 90% that is not a typo $21. that was above the range closes at $31.90 we'll see if we can keep that win streak going with chewy tomorrow that's of course the e-tailer we saw a big upside on that, 19 to 21 after talking about 17 to 19 guys, back to you. >> nasdaq outperforming the other major averages today frank holland looking at the big movers there, frank. >> really a terrific day for tech amazon leading the nasdaq 100 on the rumors and speculation it's entering cloud gaming. microsoft and google, he had definitely are their shares trading higher. chips also continue to recover after their worst day this month. just yesterday also is it possible we're seeing cannabis fatigue monster trading lower today. the worst performer in the nasdaq 100 after reports it will

release drinks with cannabis and alcohol. also facing a lot of competition when it comes to energy drinks back over to you >> all right that sounds like a good combo. frank, thanks. breaking news right now from the white house. president trump is speak eamon javers with the details. eamon. >> yeah, that's right, sarah huckabee sanders one of the most prominent and visible faces of the trump administration is going to be leaving her position as press secretary according to a tweet from the president just moments ago. the president putting out this tweet saying "after 3 1/2 years our wonderful sarah huckabee sanders will be leaving the white house at the end of the month and going home to the great state of arkansas. she is a very special person with extraordinary talents who has done an incredible job i hope she decides to run for governor of arkansas she would be fantastic sarah, thank you for a job well done." now, traditionally in a situation like this, guys, you'd ask who's going to take over as the press secretary here and run the briefing room. the daily white house press briefing obviously such a focus of the press secretary's job but this administration has simply stopped issuing white

house press briefings. there hasn't been one here in months and really since last summer they've downplayed the white house press briefing so sarah huckabee sanders' role here has been less visible she's been active behind the scenes but less visible on national television than a traditional press secretary would have been or she was earlier in her tenure. no word from the white house just yet who exactly will take over as white house press secretary. wait and see if we get any of those details here in the minutes to come. >> eamon, thanks very much for that keep us posted disney shares led the dow today after an upgrade infrom morgan stanley on excitement over its direct to consumer product joining us now to discuss the media landscape is former walt disney ceo michael eisner, chairman and ceo for 21 years. he now runs tormonte company which produces shows for adamson and netflix. thank you for joining us >> thank you for inviting me >> your company does a lot of things, investors in a wide range of areas but it would be good to start with the shows you are producing. on netflix one of them, one is

about to come on amazon. is that a sign of the times, was the demand from them just way higher than the traditional broadcasters >> well, they're another source for content creators when netflix changed from sending to you by mail and started to scream, we got very involved with them, made a show called "bojack horseman," which i think is a pretty good show. he we just put on a show from the same group called "tuca & bertie." we have a show at amazon whoever wants us will go >> it used to be so simple with streaming. and now there are so many choices. and an increasing number of choices on the way is there such a thing as too many choices is this going to get as expensive as cable >> i never thought it was simple when i was one of three network buyers now i'm thinking how fantastic it was everything was presented to you.

you had two competitors. you had 30% of the audience and you had less than 30% you got canceled it's a different world it's a great world it's great for content creators. it's great for the consumer. it's revolutionary it's no more revolutionary than going from radio to movies to television to video to blu-ray to cable it's just the next technological version of still trying to come up with something that makes you laugh or crying or be interested >> there's a growing sense on wall street that people are giving walt disney-c the company credit for being best positioned in this world among new traditional media companies just because of the brand, properties in house but this idea that netflix with a few billion dollars a year can create a virtual library pretty quick quickly. it would suggest it's not that easy

if you were back at disney would you feel well positioned or not? >> we always like getting credit whether we deserve it or not it was always good disney, i went there in '84 and everybody talked about how it was going to end ands it want going to end because it had these great legacy family-oriented products which we help recreate disney has a great legacy. bob iger following me. pixar and "star wars." buying fox forget how much they paid for all these things it gives them an advantage i would say netflix being the first mover is not to be d discarted. amson is not to be discarded apple, we just are about to make a big apple deal with tornante at&t is not to be discarded. and then there are many others

there are too many others. there will be blood on the floor. it may take five years to find out who they are but right now the enthusiasm is spreading like wildfire. and a lot of people are benefitting from it. and some people are worried about what will happen >> when you look at the options to the traditional media companies do you think the move fox has made makes sense, pull out of creating entertainment content, focus on live news and sport? and is it kind of an either/or option or to you think many players like disney are going to be able to do a little bit of everything >> well, you can have two winners, three winners you can have two losers. it's not all about yes or no there can be two yeses bob iger strategically has done a good job but never underestimate ruper murdoch. he's in my opinion the giant winner he is -- first of all taking a lot of money off the table

solved some of his family issues i mean emotional, psychiatric issues i mean economic issues he has kept his news he's kept his network. i think broadcast is going to remain just like movie theaters are still here i'm not sure about cable sorry. but the broadcasters have local strength in each market. they have less carry which means they have to be carried by government there will be some losers but i think most of the players will be here at the end of the day. >> are you suggesting disney paid a little too much for fox >> as a real supporter of disney and happy about $141 a share as it closed today i'm not unhappy about anything about disney. and if i was i wouldn't tell you. >> what about the streaming strategy increasingly it looks like this fight between netflix and disney plus at the moment

you're an early investor in netflix. produced shows for netflix what do you think is going to be the toughest job for bob iger in taking on netflix? >> i think always the toughest job is the content play. creating new content netflix has a great library but now without the ability to find library product from others it's about their new content. disney has a great library, as we all know. it's going to be about finding new content. so w4eg9 it's ted sarandas or bob iger or warner brothers or fox or anybody else, the end of the day it's house of cards. that's what helped make netflix. yes, having the library of disney, the library of nickelode nickelodeon, the libraries around tount got them started. they're ail going away it's all going to be about new product and their own library. >> what about hulu now that disney's in kroefl hulu

they can really take it global but it is going to be an investment they have to look more at locke the content and the higher cost of capital how would you play this? >> the trifecta of disney plus, espn plus, and hulu seems to me a strong sales proposition in various ways to sell it. the economics are -- how do i say this insane now, they were insane when we spent $19 billion to buy capital city's abc everybody believed that was the largest acquisition in history i walked around the block four times before i had the guts to walk up into the offices of abc and say okay that was insane. buying fox sounded insane. keeping your content aware from other suppliers sounds insane. spending $10 billion a year or whatever netflix is spending per year sounds insane

i don't know insanity seems to pass and reasonableness seems to take over >> i want to ask you a little bit about some of the big tech companies. like google with youtube clearly directly competing with the media companies. do you think the playing field at the moment is a little unfair and that the bigger tech companies either need to be broken up for antitrust reasons or face regulation in the way a news organization would on traditional media? >> i don't think it's unfair and if you're talking about creating content, streaming a i all that, these are new players. they're learning very quickly. they've hired a lot people that have been in the industry. google is a fantastic service which should not be broken up in my opinion i don't like when google gets into a conflict where if you type in plumber the first thing that comes up is a plumber that they own i think that is something that i would be concerned about that is an unfair tactic maybe taking 30% of every

transaction. and certain things is unfair tactic but google in itself is -- we all live on google i would not try to destroy facebook or google or amazon they are great consumer products >> you mentioned you'll be doing a deal with apple. what is apple's advantage? what is their play in content they've waited so long to move ahead with >> well, i don't know. what was that movie that -- show me the money >> yeah. that's one >> they've got a lot of money. they're smart. they've got taste. i don't know whether -- because they haven't -- >> jerry maguire >> jerry maguire, thank you. they haven't announced exactly how they'd distribute. amazon smartly created prime they distribute through prime. i'm told by the highest level at amazon that that is increasing the number of people that buy things on amazon

somebody told me a rumor that apple may, if you have apple tv and apple tv is behind roku, is behind fire from amazon, you'll get your programming free to the consumer if you take apple tv, that's not stupid i don't know if they're doing it i heard that from a cab driver i think. probably true. >> it's probably spot on >> probably right on, yes. >> do you think an alphabet or an apple or a google will make a play for a traditional media company? feels like people have been sort of waiting on the sidelines for that to happen and isn't really seen it yet. >> i don't know. i recommend it to somebody early on to buy netflix and it was a bargain -- >> who did you tell to buy netflix? >> other than any wife i can't say. i myself could have bought marble for so much less.

but i didn't in the end it's not what you don't do it's what you do do. that sounds terrible, right? at any event, i don't know they have the wherewithal. and maybe apple if they don't succeed with us with the product we're doing and others they may find the best use of their capital is to buy one of the -- maybe not disney that would be ridiculous but some other content player that would be -- >> well, five years ago nobody said at&t's obviously going to pay $85 million for time warner. >> i would have said that yesterday. but it seems to have happened. >> who do you think might replace bob iger at disney eventually >> i don't know. zblinser outsider >> it's always better the devil you know than the devil you don't know i'm a big believer in insider. by far he was my choice at disney i've discuss td with bob

he doesn't know yet or he hasn't told me. i think he's got some great candidates and i think the boyd is looking everywhere >> when you discussed it with him did you get a sense of houch how many years left he's got in the tank, how much longer he wants to stay on >> i don't think he knows. look, he's a fantastic guy he's got a great job he's got a great family. he's making a lot of money i think he's chosen not to run for the president of the united states i think he should stay longer. i think the shareholders would like him to stay longer. >> i was going to ask why you think he hasn't groomed a successor, an obvious one. >> well, you added the word obvious, meaning obvious to you. i'm not sure -- >> how many times has he said he's going to retire >> well, so did i don't know, liberace or -- >> he stayed on for a while i guess. >> i know. that's okay. >> michael, ab gaye disney said that mr. iger paid $65 million,

was too high relative to the kps median pay of employees. it was over 1,000 times the multiple do you agree things are getting a bit stretched not in the absolute but relative to the great employees who deliver for him every day? >> look, my view on this is an employee whether he's the ceo or less, actually does something that has an impact on the economy. i mean a major impact which bob has had. i think he deserves to being paid well. what i object to is the employee's ceo otherwise, they ride a wave, they don't do anything, they're part of a stock option plan. it results in multi, multimillions of dollars not for performance. i think you pay for performance. the issue about the rest of t

the -- i believe the higher minimum wage i think people who have done well should pay taxes. and these are two separate issues they really are. >> i wanted to ask finally about mortsmouth football club >> now you're getting to the meat >> absolutely. is this because a fan that you're there for the long term, because you believe -- >> to be clear, we're talking about soccer, right? >> we're talking about pompy, football club. >> with his accent he's talking about football you're talking about soccer. >> is this because you believe in the club? >> you've put out 11 possibilities. in the new world which you're discussing that one thing that is appointment viewing that's left is sports live sports. news is now a commodity sti. not so much when trump is around but after he goes it will be something of a commodity everything else is you just go

to netflix if you have sports, you light up the christmas tree for sky tv for espn for whoever else wants to follow it so i thought the best thing for me to be involved with other than my television shows and other things would be sports and then i looked at the world, i thought it was too expensive in the u.s. i thought football had -- american football had its problems international football was worldwide. and then we looked around the world and discovered portsmouth uk >> there we go well, we'll see if pompy get back into the premier league it's been a real pleasure having you with us. >> pu. >> i think your real claim to fame, though, is your cnbc show. >> i agree that was more fun. >> more fun than being ceo of disney >> for sure. >> he knows where he is. >> michael, thanks for joining us fascinating interview. meantime, we've got an earnings alert on broadcom. josh lipton has the details.

hey, josh. >> broadcom reporting eps of $5.21. the street was expecting $5.16 so that's a beat revenue, though, 5.52 billion. that is light. the street was looking for 5.68 billion. as for the full year, too they lower their guidance by about $2 billion. now looking for $22.5 billion. their biggest segment semiconductor solutions $4.1 billion. that also undershoots expectations ceo tan saying they see a broad-based slowdown in the demand environment which he believes is driven by continued geopolitical uncertainties as well as the effect of export restrictions on one of his largest customers. remember, these are some of the big questions analysts had the effects of these continued trade tensions on the company company.and the recent sanctions placed on huawei and how they would impact the company as well conference call starts at 5:00 p.m. eastern and we'll be on it.

guys, back to you. >> all right, jash, thank you. deep slide 7% for a stock that has underperformed >> underperformed. it of course bounced a little bit. what i wonder is if people are going to extrapolate and say this is a pretty cautionary tone about the outlook for demand see if the overall group gets hit. >> kudos to our trade to close guests today somebody will remind me in a moment >> kevin hincks. >> kevin hincks. kevin said we'll see a $15 move in either direction. >> oil prices spiking after attacks on two tankers in the middle east. we'll head live to the region for an update straight ahead

word there was a double tanker attack off the iranian coast. nasdaq up about .6%. technology had a very strong day and the russell 2000 index of small caps had been an underperformer over the past few weeks. actually was the shining star today, up 1% >> oil prices as mentioned higher today after a tax on

tanker ships near the world's busiest sea lane for oil this renewing fears of conflicts in the middle east following a series of strikes last month hadley gamble joins us now with more hey, hadley. >> hey, wilfred. so it's about half past midnight here in the persian gulf this is a story of course that we've been watching develop since around 6:00 a.m. local time this morning when the first attack did take place. and of course just an hour or so ago we heard from u.s. secretary of state mike pompeo he was directly blaming tehran for these two attacks. but he was also stopping short of calling for military action these attacks took place just about 70 miles from where i'm standing i'm here in the emirate of fujairah in united arab emirates this is one of the busiest shipping lanes in the world as you guys know and this comes just a month after four other tankers were attacked just downtown coast from where i'm standing a lot of tension tonight in the region, guys and certainly all eyes on what's going to happen next >> and hadley, it's not just the u.s. versus iran, right?

it's saudi arabia, ae. they're backing different sides in the yemen civil war just trying to paint a very complicated and very tense picture for us >> you got, it sara. that's absolutely right. because when you're talking about energy and talking about politics in this region all of these things go very, very much hand in hand we're talking about saudi arabia, the uae. certainly in the last 48 hours we saw a missile launched from yemen that was injuring folks at an international airport in the southern part of saudi arabia. awful these things very much in tune certainly folks i've been speaking, to u.s. officials have essentially said to me there's no reason why these tanker attacks couldn't possibly be linked of course to what we saw coming out of yes, ma'am nen terms of that missile attack on that airport in saudi arabia as well so certainly the rhetoric not only is ratcheting up but the actions from these different countries as well. certainly this is an area we'll continue to have to watch. >> hadley gamble, thank you. time now to get a cnbc news update with sue herera

hi, sue. >> hello again, sa sara. hello, everyone. here's what's happening at this hour japanese prime minister shinzo abe met with iran's supreme leader ayatollah khamenei today in an attempt to cool down tensions between the united states and iran. on wednesday he held talks with president hassan rouhani from tehran abe is the first japanese leader to visit ter nn 41 years pro brexist candidate boris johnson securing the most votes in the first round of voting further rounds of voting will they're oet tnds down to two the final match-up will be decided in a mail ballot starting late last month at&t is canceling all preorders for samsung's galaxy fold smartphone. the folding phone was scheduled to be launched on april 26th, but that date has been postponed indefinitely due to device failures in some test versions and good news. more americans are exercising. bad news still not enough

a new report from the cdc says just 25% of adults in urban areas got enough physical activity in 2017 but that's up from 2008 when only 19% of adults met physical activity guidelines. it's a good news/bad news situation here all right. that's the news update at this hour, guys i'll send it back downtown to you. >> sue, thank you very much for that and sara, just to pick up on that boris johnson news he is now the huge overwhelming favorite because people felt his biggest challenge was making it to the final two, not winning the vote once he's in it and today's first-round poll -- we're already very low on sterling but -- and it doesn't change the parliamentary math it doesn't change whether the eu's going to budge but it looks like he'll be the leader to find that out once again. >> bojo takes the lead up next we'll break down the charts to find out whether the rise in the global uncertainty index is signaling a red flag

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dow closed up 101 today. let's send it back to mike santoli for the final dashboard of the day what are you watching? >> calling it fading the flux. and the flux in this case is policy uncertainty this is a chart from citigroup economists looking at the policy uncertainty index. that's the blue line here jumping around this goes back long time again, almost 25 years. and the orange line is the vix, the volatility index for u.s. stocks now, at first glance it seems like uncertainty is almost kind of climbing off the charts well off its general trend whereas volatility remains pretty subdued. and while that's generally true i think it's important to know what uncertainty is. it's generally news coverage mentioning the words uncertainty. it's perceived uncertainty about trade policy, federal reserve policy, even things like fiscal policy sometimes we do get that. i'm going to point to just a couple of other instances when you had a divergence like this this was 2012. this is kind of the fiscal cliff

era after the second -- the re-election of president obama, didn't know if we were going to shut down the government or have the sequester, things like that. a lot of uncertainty and yet the market remained pretty calm. and then obviously in here lots of uncertainty doesn't necessarily mean it's bad stuff. you had the tax bill we didn't know if it was going to pass. a lot of these things. i think you can look at this and say while the stock market is aware of these uncertainties but is attempting either wait and see or price demands i think that's how i would try to interpret this. >> spike in what must have been the financial crisis in the vix -- >> oh, yeah. and this is probably a weekly or monthly. it shot well above -- this is what, 60 right there that one you remember. >> for sure. mike, thanks very much for that. still ahead, oil prices popping today. a key report hits tomorrow morning. >> we're still awaiting chewy's ipo pricing. could come any minute now. we'll bring u yothe key details

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the delivery wars are heating up again this time target is expanding its delivery options and now allowing online shoppers in 47 different states to get same-day delivery by paying a flat fee of $9.99 per order. the retailer is ordering shipt that it acquired in 2017 to launch the service have we seen, mike, any real stock or sales reaction when any of these big retailers announce an expedited shipping method >> i don't think on the announcement because they're getting paid for this, right

so this is a $10 per order type of thing it's want necessarily -- >> same-day shipping is expensive. >> true. unless it's from the local store and they're kind of sending it out to, you know, to the neighborhood so the idea with target has really embraced the idea and that's how we're going to treat them and i don't think the stocks have reacted that much. what the stocks have reacted to that the presumption of free shipping has been a burden and when that's same day or two-day, that's been an added cost. >> does that change the idea for the big guys like target and walmart that they've started to turn the corner on gross margins and they're back on the up again? >> i don't know. i think this is almost more of a -- it's kind of a luxury tier of service from target it's almost a test to see how badly people want things on the same day or what subset of products you have on the same day, so i don't think they would expect a tremendous amount of

adoption of this, i don't think. in a sense, they have free shipping on slower delivery and i think they would be fine. >> just to be clear, amazon and walmart both offer next-day delivery on many items and they're both experimenting >> there's a lot of order onlines and in-store pickup and the rest of it >> i think there's a general sense and this is the hard part here and just getting around and getting things to people faster. there's no magic and technological wizardry that we can employ that will make it easy for the company >> walmart was one of the consumer stocks at an all-time high with chipotle >> up next, your wall street look aadndoukehe a yr y reports that every investor needs to watch and "closing bell" back in a couple of minutes. this is the couple who wanted to get away

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let's take a look at how we finished up the day on wall street strong across the board. the dow jumped about 101 points and s&p 500 closed up 0.4% and sectors were in the green today lead by energy and that surge in oil price that we saw of some

geopolitical tepg geopolitical tensions off the coast of iran and the russell 2000 continues to outperform both the russell and the nasdaq are up on the week more than 1%. after hours trade, broadcom sinking 7% down. meantime after missing wall street's revenue estimates lowering its full-year sales guidance and the company's ceo saying they're seeing a broad-based slowdown in demand >> time now for our wall street lock ahead and our report and retail sales both hit the tape tomorrow let's start with what to watch in the oil report. seema has that >> secretary of state mike pompeo blaming iran for the two oil tankers. oil traders are trying to could understand if the rise to geopolitical tensions will lead to a short am of the global oil market and tomorrow the eia, the international energy agency will reveal its forecast. they want to know if the iea will join the administration and opec in cutting its outlook for oil demand growth and what the ongoing trade dispute between

the united states and china mean for prices oil up 2% today and lower by 14% in the last one month. wilf >> seema, thank you very much. investors will also digest some big consumer data and sara has a preview of that. >> so investors will get another read on the state of the consumer tomorrow. may retail sales set to be released economists are looking for a rebound and overall sales to rise by .6%, remember, in april they declined.2% if you take out autos, though, which is a big part of the comeback story sales are seen at 0.3% and june dipping to 97.3 down from a hundred in may we're expecting a healthy snapshot of the consumer and anything much worse will help the case that the fed has to pivot next week in its language toward pointing toward an easing and anything much, much better you might say well, it's want so clear whether the fed needs to start cutting interest rate, but if we're in line it seems like

the market pretty much expects the fed to change its tune and start planting the seed for a rate cut. >> it will feed right into gdp estimates, though, because we're getting late in the quarter right now, and i do think this might be one of the last swing factors that determines what kind of economy pace and if we're below 2% as the tracking numbers say and inflation is below 2% if you're in less than 4% nominal gdp growth environment at least right now for these three months which to me leads the question that we're not talking about a lot anyway is what happens to earnings forecasts, leading right up to reporting season because we haven't seen a lot of movement either up or down in consensus so that to me is one of those things that we're waiting for the macro stuff and the fed and the trade and we'll have to see how earnings are pacing. >> on the senior trade, one trader earlier today was saying that perhaps the earlier to market is the pivot, and want quite cutting yet. >> absolutely. suddenly the market starts to

wonder what the next support is after that, but we'll have to see. >> they'll just have to keep jawboning. >> you of twant the carrot to b moving. >> and also chewy ipo will be good to watch. >> coming tomorrow we'll look forward to that. >> thanks for watching today that does it for "closing bell qwest ". >> "fast money" begins right now. >> fast money starts right now live from the nasdaq marketsite overlooking times square i'm melissa lee. your traders are tim seymour, karen finerman and dan nathan. broadcom sinking after moments ago and that conference call is kicking off right now and we'll have the latest we start off with oil crude jumpsing as two oels are oil tankers were attacked and hadley gamble is on